- Who qualifies for the SOH cap?
If you own and occupy your home as your permanent residence and receive the
$25,000 homestead exemption you will automatically qualify for the cap.
- Does the cap limit property taxes?
No, the cap limits the increase of the assessed value of your property.
A property’s assessment could go down, but property taxes could go up if
the local taxing authorities increase their tax (millage) rate.
- Can a vacant lot adjacent to the homestead receive the benefit of the cap?
If both the homestead property and vacant lot are owned by the person receiving
the homestead exemption, the SOH cap can be extended to the vacant lot if
requested by the owner.
- What about any improvements or additions to the property?
The full value of any improvements (not including normal maintenance) or additions
to the property will be added to the capped assessed value.
- How is a property with a partial homestead exemption affected?
If property receives a partial homestead either because of the type of
ownership (i.e., two owners with only one receiving homestead) or because
of the type of property (i.e., a duplex that has one side used as homestead
and the other side rented) the cap applies only to that portion of the property
receiving homestead exemption. The remainder of the property is assessed at full
market value.
- What is the "recapture" rule?
In September 1995, the Governor and Cabinet approved a rule directing property
appraisers to raise the assessed value of a qualifying homestead property by the maximum
of 3% or the annual change in the Consumer Price Index, whichever is less, on all
properties assessed at less than full market value whether or not that property's value
increased during that calendar year.
For example, a property's market value did not change. However, since
its assessed value remains below market value, the Property Appraiser must
increase the assessed value by the annual limit to bring its value closer to
full market value. See Sample Calculations
- What happens when a property is sold?
On January 1st following the sale of the property, the homestead
exemption and the SOH cap are removed, and the assessed value will be increased
to equal the market value. The new owner can apply for homestead exemption and
will be entitled to a new SOH cap. If the new owner has never owned a home in
Florida, the cap will be applied to the assessed value the year after homestead
is first granted. If the new owner had homestead on a previous Florida home,
they may be able to transfer their SOH differential to the new home (see
"Portability").
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